When I’m asked if an annuity is a good buy, I reply: it all depends on your situation and your goals. Once you’ve settled on what you want to accomplish, you can decide whether an annuity makes sense for you, realizing that different types can help you meet different financial goals. Annuities can’t all be… Continue reading Annuities: The Swiss Army Knife of Personal Finance
Category: Money Matters
SECURE 2.0 Act Lets Retirees Defer Taxes on Retirement Plan Money Longer
A retirement crisis looms. Americans aren’t saving enough, and the aging of the population may require trimming Social Security benefits eventually. Congress recently passed the SECURE 2.0 Act to help people save more for retirement by boosting tax breaks. It builds on the original SECURE Act. Three provisions will affect the most people. Required minimum… Continue reading SECURE 2.0 Act Lets Retirees Defer Taxes on Retirement Plan Money Longer
Long-Term-Care Insurance via an Annuity Has Many Pros, Some Cons
Long-term care–whether at home, in assisted living or in a nursing home, costs a lot—especially if it continues for years. To protect their finances and leave something for their heirs, many people would like to buy long-term-care insurance (LTCI). But LTCI isn’t cheap. And there’s a big drawback. If you buy it and never collect… Continue reading Long-Term-Care Insurance via an Annuity Has Many Pros, Some Cons
A Financial Review in Early 2023 Can Optimize Your Strategy
My husband is delighted to know he is not my Sugar Daddy. In fact, my doctor has me sworn off sugar of all kinds. So, no Sugar Daddies need apply. I am officially pre-diabetic. In truth, I saw this coming. My twin brother is a diabetic and so is my sister. It is in the… Continue reading A Financial Review in Early 2023 Can Optimize Your Strategy
An Income Annuity with a Time Limit Can Be a Great Solution
Immediate income annuities with a lifetime payout are popular for a good reason. By providing immediate monthly income that’s guaranteed for life, they help assure a worry-free retirement. But you don’t have to choose the lifetime option. Instead, you may want to choose a set income term from five to 20 years. Sometimes it makes… Continue reading An Income Annuity with a Time Limit Can Be a Great Solution
How To Shop for a Fixed-Rate Annuity So You’ll Get the Best Deal
One annuity may pay more than twice as much as much as a similar one—comparison websites make shopping easy. If you’re looking for a haven for your money, with a three-year fixed-rate annuity, you can choose one paying 2.00% annually or one paying 4.25%! Other than the rate, the two products are quite similar. If… Continue reading How To Shop for a Fixed-Rate Annuity So You’ll Get the Best Deal
Have Lower-Yielding or Underperforming Annuities or CDs?
Today’s higher interest rates are great when you have new money to invest. But what can you do if your money is already tied up in lower-yielding deposit accounts—specifically, bank certificates of deposit and/or fixed-rate annuities that are still subject to early surrender penalties? It turns out you do have options, especially with annuities. While… Continue reading Have Lower-Yielding or Underperforming Annuities or CDs?
Three Ways to Get Future Lifetime Income with Annuities
Looking to maximize retirement income? Fixed-rate, income and indexed annuities offer different ways to get there, either standalone or in sequence. An annuity is the only financial product that can guarantee lifetime income. If you want to secure future income with an annuity, you have three main choices. Each can be appropriate for nonqualified (taxable)… Continue reading Three Ways to Get Future Lifetime Income with Annuities
Five Annuity Myths That Can Blind You to Good Options
Annuity myths are harmful because they lead people to dismiss annuities out of hand when they could be a perfect fit. Myth 1: annuities are all the same. They’re good only for retirees. Fact: different types of annuities are distinct and can help a range of people achieve their financial goals. Annuities fall into two… Continue reading Five Annuity Myths That Can Blind You to Good Options
Use these 7 killer strategies to never run out of money in retirement
Are you concerned that you will run out of money in retirement? It’s a real issue, given that people live longer than ever before. It’s wonderful to live a long and healthy life. But it would be best if you spent your retirement years enjoying yourself rather than fretting about whether or not your money… Continue reading Use these 7 killer strategies to never run out of money in retirement
New IRS Rule Lets Early Retirees Take More Money from Plans
Fixed-annuity guarantees more income for penalty-free early withdrawals from retirement plans. Post-pandemic, more people want to tap their retirement plans so they can retire early. Thanks to an IRS ruling that became effective in January 2022, they now can take bigger early withdrawals without tax penalties. Here’s how it works. If you take out any… Continue reading New IRS Rule Lets Early Retirees Take More Money from Plans
“Free Look” for Annuities Offers Safety Valve If Rates or Circumstances Change
Occasionally it makes sense to cancel a new policy and get a better one. With most financial products, you’re committed once you buy. After you’ve bought a stock or a mutual fund, you can’t cancel the purchase and get your money back if you’ve changed your mind or the stock market has plummeted. Even with… Continue reading “Free Look” for Annuities Offers Safety Valve If Rates or Circumstances Change
Laddering Fixed-Rate Annuities Offers Combination of Good Rates and Flexibility for Future
With today’s low interest rates, it takes planning to create sufficient retirement income without taking more risk than you need to. The days when you could get good income from a collection of Treasury bonds are long gone. You can get income from dividend-paying stocks, bank accounts, bonds and bond funds, and several different types… Continue reading Laddering Fixed-Rate Annuities Offers Combination of Good Rates and Flexibility for Future
Why Fixed-Rate Annuities Pay More Than Bank CDs
Fixed-rate annuities act much like bank certificates of deposit but usually pay much higher rates than CDs of the same term. How can insurers afford to do that? After all, both banks and insurers pay a set rate. Before we answer that question, let’s cover the basics of how each works. A very popular type… Continue reading Why Fixed-Rate Annuities Pay More Than Bank CDs
Has COVID Clouded Your Retirement Picture? 3 Tips to Plan Clearly
Some people planning for retirement may do most of the right things in terms of saving and investing. But they don’t have a crystal ball and cannot foresee exactly how much money they will need in their non-working years – or for how long. That uncertainty – magnified by the financial effects of COVID-19 – is one… Continue reading Has COVID Clouded Your Retirement Picture? 3 Tips to Plan Clearly
Often-Overlooked Way to Fund Your Roth IRA Has Many Advantages
A Roth IRA is a uniquely powerful retirement-savings tool because you won’t pay taxes on the money you withdraw during retirement. Different types of annuities accomplish different things and have distinct pros and cons—like the Swiss army knife of personal finance. Since they’re so varied, one type or another can work well for a Roth… Continue reading Often-Overlooked Way to Fund Your Roth IRA Has Many Advantages
Could You Be Missing Out On Senior Discounts?
People who reach or near their retirement years often need to watch every penny. Sure, some of them are financially fit and don’t lose sleep worrying that their bank accounts and investments will run dry. For many, though, frugality is the watchword as they struggle to make it through each month. Fortunately, aging does come… Continue reading Could You Be Missing Out On Senior Discounts?
Want Or Need To Retire Early? Tips On How To Pay For It
Delaying retirement has become common for many Americans, either because they saved too little or they just want to continue working because they enjoy it. Others go in the opposite direction. They retire early – sometimes out of choice but often because their health or the economy forces it. While early retirement might sound appealing,… Continue reading Want Or Need To Retire Early? Tips On How To Pay For It